SaaS vs. On Premises: What’s Best For You?

How to pick the right option for your business

SaaS, short for Software-as-a-Service, and better known as Cloud is rapidly becoming one of the most popular choices for businesses, instead of the more traditional on-premises software. Confidence in this software is high at the moment. There’s a buzz surrounding SaaS business management software solutions, specifically around the likes of Accounting and CRM systems, Business Intelligence, and even customer experience management. While its popularity is undoubtedly growing, the question you should really be asking yourself is, “Between SaaS and on-premises software, which is the right option for me?” To help you decide, we’ve broken down the two. We’re explaining both in full and giving you all the information you need to make the most informed decision.

Advantages Of SaaS

• Lower Operating Costs – cost is no doubt one of the biggest advantages associated with SaaS. The financial savings made are simply down to the fact that the only cost involved surrounds the subscription. Costs associated with servers and infrastructure is usually covered by the company providing the SaaS for you. Therefore by using SaaS, you’ll save money on overall operating costs as well as the manpower usually required to service such applications. While you can still have On-Premises and simply pay a subscription model (bringing the cost of both more in line with each other), cost benefits do tend to lean toward SaaS.
• Little Tech Knowledge – the company providing the SaaS for you will handle all of the technical aspects. This will include any updates and in most cases, will also include user and technical support. This means that you do not need to fully understand the technical workings of the application in order to use it.
• Scalability – while upgrades are the same for both SaaS and on-premise, they very much depend on the configuration as it’s this that will determine the cost. More often than not, SaaS comes out more cost-effective when compared with on-premise upgrades.

Advantages Of On-Premises

• Control – This is one of the biggest advantages of on-premise, especially for larger corporations. In fact, it’s often what makes On-Premises the only option. User privacy is incredibly important and the need for companies to protect their information and sensitive data is paramount. By using On-Premises you not only have full control but also greater flexibility. With SaaS however, you have no control over the environment. Updates will happen without your knowledge at any point, completely changing functionality and you simply have to adapt. With On-Premises however, that control is all yours, which gives much greater security.
• Security – Despite SaaS complying with security and data ownership regulations, the only real way for companies and governments to truly comply with their often strict policies is to host software on On-Premises. With the much greater control and flexibility overall, companies are able to implement more security measures which can aid in further preventing from attacks.
• Your Software – On-Premises allows companies to customize and tweak certain elements within the software itself. This literally allows you to tailor it to your needs.

Choose The Option That’s Right For You

With both having such great popularity, it’s clear there is a need for both. SaaS however fails to offer the security and control that On-Premises offers. While some may say, “you get what you pay for”, we do see that SaaS can be beneficial for businesses who don’t mind not having full control and is therefore a better option.

In this sense it’s better for smaller businesses. If you’d like more information on the two, along with help deciding on the best option for you and your company, simply contact NAV Experts today on 01268 724005. NAV Experts have over 90 years experience implementing and supporting ERP solutions and can help you make the most informed decision with their vast wealth of knowledge in this specific field.